UPM continues to battle weak market conditions
1 November 2012UPM’s forest and timber division recorded a 10% drop in sales during the third quarter, according to the company’s interim report.
The division’s operating profits were €3m, a big improvement from the previous quarter (-€41m), though this period included €41m of charges relating to restructuring of sawn timber and further processing operations.
Sales were €364m, 10% down on a year ago, while the decrease was more pronounced compared to the previous quarter (€473m).
Sawn timber deliveries totalled 382,000m3, down from 422,000m3 a year ago and 462,000m3 in the second quarter.
UPM president and CEO Jussi Pesonen said the group’s paper, plywood and timber divisions continued to suffer from weak profitability.
Meanwhile, UPM’s plywood division recorded a 7% growth in sales on a year ago to €93m, with deliveries up 6% to 165,000m3.
An operating loss of €3m was recorded, compared to a loss of €8m a year ago and operating profits of €5m in the second quarter. Plywood prices increased during the period and were on average slightly up on a year ago.
